Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 3.50 points at the opening bell
Among corporate news, Yes Bank declares Q3 results today, 14 January 2015.
Tata Motors after market hours yesterday, 13 January 2015 said that its global wholesales rose 8% to 85,742 units in December 2014 over December 2013. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 4% to 30,597 units in December 2014 over December 2013. Global wholesales of all passenger vehicles rose 11% to 55,145 units in December 2014 over December 2013. Global wholesales of Tata Motors' passenger vehicles rose 29% to 12,183 units in December 2014 over December 2013. Global wholesales for Jaguar Land Rover (JLR) rose 7% to 42,962 units in December 2014 over December 2013.
Shares of companies engaged in mining of iron ore, manganese, bauxite, copper and gold and shares of companies in the cement, aluminium and steel sectors which are the user industries of these minerals, will be in focus after the Ministry of Mines after trading hours yesterday, 13 January 2015, said that the government has promulgated the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015 on 12 January 2015. The ordinance amends certain provisions of the MMDR Act, 1957. The Ministry of Mines said that the promulgation of the ordinance became necessary to address the emergent problems in the mining industry. Essentially, through the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015, the government intends to remove discretion in grant of mineral concessions. Henceforth, all mineral concessions would be through auctions, thereby bringing in greater transparency and removing of discretion. Unlike in the 1957 Act, there would be no renewal of any mining concession. The tenure of the mineral concession has been increased from the existing 30 years to 50 years. Thereafter, the mining lease would be put up for auction (and not for renewal as in the earlier system).
The Ministry of Mines said that Sub-Section 5 and 6 of Section 8(a) of the ordinance provides that the mining leases would be deemed to be extended from the date of their last renewal to 31 March 2030 in the case of captive miners and till 31 March, 2020 for the merchant miners or till the completion of the renewal already granted, if any, whichever is later. Thus, no mining lease holder is likely to be put into any disadvantaged condition. It is expected that this would immediately permit such closed mines to start their operations, the Ministry of Mines said in a statement.
The ordinance proposes to setup a National Mineral Exploration Trust created out of contribution from the mining lease holders. This would allow the government to have a dedicated fund for undertaking exploration. In addition, the transferability provision (in respect of mining leases to be granted through auction) would permit flow of greater investment to the sector and increasing the efficiency in mining.
In respect of ten minerals in Part C of First Schedule like iron ore, manganese, bauxite, copper, gold, etc., the requirement that a state government should obtain the prior approval of the central government before grant of mineral concession has been done away with. Similarly, approval of mining plan by the government would no longer be mandatory as a provision has been added under 5(2) (b) permitting the state governments to devise a system for filing of a mining plan obviating need for approval by the central government.
On macro front, the rate of inflation based on the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon today, 14 January 2015.
Meanwhile, the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months. An increase in inflation food items contributed entirely to the inflation rise in November 2014. The CPI data was announced after market hours on Monday, 12 January 2015.
Weakness during the latter part of the trading session pulled key benchmark indices lower on Tuesday, 13 January 2015. The S&P BSE Sensex declined 159.64 points or 0.58% to settle at 27,425.73 on that day, its lowest closing level since 8 January 2015.
Foreign portfolio investors bought shares worth a net Rs 235.09 crore on Tuesday, 13 January 2015, as per provisional data.
Asian stocks were mixed today, 14 January 2015. Key benchmark indices in China, Hong Kong, and Singapore were up by 0.07% to 0.56%. Key benchmark indices in Indonesia, Taiwan, Japan, and South Korea were off 0.17% to 1.09%.
US stocks closed lower yesterday, 13 January 2015, after posting their largest intraday swing since October, amid fresh concerns about the future of Europe's economy.
Meanwhile in Europe, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
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